“The only thing that is constant is change”
In positive news for Australian residents and expats, the Australian Government has scrapped plans for a lifetime non-concessional super contribution cap of $500,000, and instead has implemented a reduction in the annual non-concessional contribution cap to $100,000 per year from 1st July 2017.
To start with the basics, a non-concessional contribution, which in most circumstances can be made by both Australian residents and non-residents, is an after-tax contribution. This is different to a concessional contribution, which can be a tax-deductible contribution for Australian expats and residents and has a significantly lower cap.
The good news for Australian expats getting closer to retirement, is that the bring-forward provision will still allow you to bring forward 3 years of non-concessional contributions, a total of $540,000 until 1st July 2017. This can allow you to significantly boost your superannuation before the rules change. After 1st July 2017, this bring-forward provision will only allow for a non-concessional contribution of $300,000, which may not be sufficient to allow you to live the retirement lifestyle you desire.
Be sure to sit down with your financial adviser before 1st July 2017, and ensure that you are optimising your superannuation before it’s too late.
To your financial success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3
Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified professionals, allowing us to provide specialist advice to Australians living abroad.
To learn more about how we may be able to help you, please contact us:
✆ +65 8282 5702
To discuss how these changes affect you, click here to book a complimentary consultation: http://bit.ly/Book-Your-Consultation
General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.